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Accurate Tax Reporting with Indian Taxation System
Taxes are not the first thing you recall when you think about digital transformation. While new data-driven business models are coming up in all lines of business, tax compliance becomes next priority and that becomes an expensive mistake. Globally, tax authorities have realized that new business models can also lead to loss of tax collection. Therefore, tax authorities themselves are embracing latest technologies to bring down tax evasion. This evolution has given rise to a few challenges for companies. First, they must be able to keep up with new digital requirements like electronic invoicing and audit filing. Second, they must most definitely ensure that the data they submit is accurate, because authorities can pick up non-compliance more easily now than before.
Implementing digital transformation can also add benefits such as a single source of truth with accurate tax data enabling advanced analytics to identify tax risks and opportunities.
India has a comprehensive tax structure with clear delineation between Central and State Governments and local bodies. Central government taxes include taxes on income, customs duties, central excise and service tax. Value Added Tax (VAT), stamp duty, State Excise, land revenue and tax on professions come under State Governments and Local bodies levy tax on properties, octroi and for utilities like water supply and drainage.
In the last 10-15 years, Indian taxation system has undergone many reforms. The tax rates have been rationalized and tax laws have been simplified so that there is better compliance, ease of tax payment and better enforcement. The rationalization process of tax administration is ongoing. We are aware now that the Goods & Services Tax (GST) implementation has enhanced competitiveness and performance of the Indian economy. Tax management is transitioning completely from complex Central and State indirect taxes to GST. This means a common indirect tax structure as against scenarios where goods are taxed multiple times and at different rates. GST has reduced the complexity and enabled transparency. At this juncture, a software provider, can help businesses in their localization requirements and provide support on various reports as per the Govt. norms.
Inspirria’s Indian Taxation (IIT) bundle provides a comprehensive bundle of services through NetSuite. Our team of experts help clients with easy integration of the NetSuite product. The team also helps you in preparing detailed vendor and customer statements; automated statutory reporting and seamless integration of all transactions wherever localization is required. Here are the key benefits:
Automated tax reporting: Increased agility and accuracy in reporting of GST compliant taxes
Seamless integration: Transactions seamlessly integrated, wherever localization is required.
GST compliant: Our comprehensive service package helps in defining types of taxes, input and output posting, configuring tax codes and capturing tax details at customer and vendor level.
